Tax regulation mechanism II (MIA/VAMIL scheme)
Updated: 09.01.2019
Author: Stijn Anciaux
The Environmental Investment Allowance (MIA) provides the opportunity for private companies to deduct an extra amount of the investment cost from the taxable profit for investments that are included in the Environmental List. The exact share of the investment that applies for the deduction varies between 0% and 36% depending on the nature of the investment. Random depreciation of environmental investments scheme (VAMIL) provides the opportunity to depreciate 75% of an investment that is included in the Environmental List in a single year, thereby reducing the taxable profit in that year. The depreciation of remaining 25% of the investment should be spread over the economic lifetime of the obtained goods. Each business can be granted the MIA for environment-related investments of a minimum of € 2,500. A cap is set on €25 million per taxable person per year and €25 million per equipment.
The budget for MIA in 2018 amounts to € 99 million and for Vamil €40 million.
In 2019 there will be some changes regarding the budget: For the MIA, the budget is increased by € 8 million and the Vamil is reduced by € 8 million.
Eligible technologies
The ‘Milieulijst’ that is published by the Netherlands Enterprise Agency (Rijksdienst voor Ondernemend Nederland) provides an overview of the investments eligible for MIA and/or Vamil tax credits.
| Biofuels | The following category of delivery station for high-blend bio-fuels is eligible for MIA tax deduction:
Delivery station for the delivery of high-blend bio-fuels as motor fuels for vehicles. One of the following fuels must be delivered: B30, B100, E85, E95, biomethanol, PPO or fuel consisting of at least 30% Hydrotreated vegetable oils (HVO) (No. B 3730)
The delivery station must consist of a delivery point and buffer stock for bio-fuel (No. B 3730). |
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| Hydrogen | The following category of delivery station for hydrogen fuel is eligible for MIA tax deduction:
Delivery station for hydrogen as motor fuel for vehicles. The hydrogen must be delivered in liquid or gaseous form to the delivery station. The delivery station must consist of a delivery point and may consist also of compressors, buffer stock and a local hydrogen cleaning unit (No. F3710)
The following categories of hydrogen vehicles are eligible for MIA tax reduction.
Hydrogen passenger car with as main motor for the propulsion a fuel cell with hydrogen as fuel and a carbon emission of 0 gram per km (No. F 3109).
Hydrogen bus (European vehicle category M2 or M3) that is provided with energy by hydrogen. The hydrogen needed for propulsion must be exclusively used by a fuel cell. In addition, braking energy must be used for propulsion (No. F 3115). |
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Amount
For the high-blend biofuel delivery system 13.5% MIA tax reduction in combination with 75% depreciation applies (MIA/Vamil 2018). Investments related to fuel cell systems for transport are eligible for maximum support: 36% MIA tax reduction and depreciation of 75% of the investment in a single year.
For the hydrogen passenger car, a maximum of €50,000 of the investment sum is eligible for tax credit. 36% MIA tax reduction in combination with 75% depreciation applies (MIA/Vamil 2018).
For the hydrogen bus, a maximum of 36% MIA tax reduction in combination with 75% depreciation applies (MIA/Vamil 2018).
Addressees
Entitled party: The entitled parties are enterprises that invest in renewable energy systems, energy-saving projects or technologies improving energy efficiency (Article 3.42a in conjunction with Article 3.43 Wet IB 2001). Private individuals are not entitled to tax benefits.
Procedure
Process flow | - Applications are run through the webportal of the Netherlands Enterprise Agency (Rijksdienst voor Ondernemend Nederland)
- When applications have been registered they can be applied in the tax declaration
- The application will be reviewed by the Netherlands Enterprise Agency
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Competent authority | Rijksdienst voor Ondernemend Nederland (Netherlands Enterprise Agency) |
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Distribution of costs
| State | The costs arising from the tax credit scheme are borne by the state, as it receives lower tax revenue. |
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Netherlands
